If the government of Techland reduces tax rates,________.
A) the economy's labor demand curve will shift to the right
B) the economy's labor demand curve will shift to the left
C) the economy's aggregate supply curve will shift to the left
D) the economy's labor supply curve will shift to the left

Question

Quizplus · Accepted Answer

When the government reduces tax rates, businesses and individuals have more disposable income. This often leads to increased consumption and investment, which in turn leads to a higher demand for labor. Therefore, the labor demand curve shifts to the right, resulting in an increase in employment and potentially economic growth.

If the Government of Techland Reduces Tax Rates,________